India, WB sign INR 3,371 crore loan pact for rural roads project


India, WB sign INR 3,371 crore loan pact for rural roads project

India signed a INR 3,371 crore loan pact with World Bank to provide additional financing for PMGSY rural road projects. The loan has a 3-year grace period, and a maturity of 10 years, the finance ministry said in a release.

It will provide additional financing for the Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project “which will build 7,000 km of climate resilient roads, out of which 3,500 km will be constructed using green technologies”, the release said.

The World Bank has supported PMGSY since its inception in 2004. So far it has invested over USD 1.8 billion in loans and credits mostly in the economically weaker and hill states across North India—Bihar, Himachal Pradesh, Jharkhand, Meghalaya, Rajasthan, Uttarakhand, and Uttar Pradesh.

It has built and improved about 35,000 km of rural roads and benefited about eight million people with access to all-weather roads. The release further said that adequate maintenance of the existing 4.6 million km of road network is emerging as a major challenge. Read More

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